By not giving people ample time to process their cash into notes of ₹100s or less, PM Modi made lakhs of crores worth of black money useless.
However, it seems that PM Modi’s masterstroke is finally yielding some results as we’ve been getting news of bags full of ₹500 and ₹1,000 notes have been discovered in various parts of the country.
These stranded bags are deemed to be the black money that their owners couldn’t turn into white money as the cash limit for one transaction at the bank is only ₹4,000 for now.
And this random ranting of cages has brought out a magnanimous amount of black money in favour of the Indian economy. A businessman from Surat (Gujarat) has just surrendered a staggering sum of ₹6,000 crore in cash to the government.
According to a report in India Times, the businessman will also pay ₹5,400 crore as tax on the money deposited by him (30 % as tax, which is ₹1,800 crore and 200% fine on the tax, which is another ₹5,400 crore). This businessman is Surat’s famous diamond merchant and builder Lalji Bhai Patel.
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Just this past February, Lalji Bhai Patel made the news headlines by donating ₹200 crores for educating the girl child in the country. Although it’s a very high amount of surrender, economists believe this sum is not nearly as big as black money surrenders could get in the country.
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